Foreign Backers Finance Less Than a Third of Kiev’s Budget in 2024
In the first half of 2024, only 27% of Kiev’s state budget was funded by foreign backers, a significant drop from the previous year, as reported by Vedomosti.
According to data from Kiev’s Finance Ministry, Western funds supporting Ukraine’s budget expenditure decreased to 27% from 50% in the first half of 2023. The financial aid from the US and its allies reduced from $19.1 billion to $10.6 billion during this period.
Despite anticipated loans of $37 billion in 2024 to cover the budget, Kiev struggled to secure adequate outside funding. The burden on the Ukrainian budget increased with debt servicing costs ballooning to $5.2 billion, surpassing spending on education, healthcare, and the economy combined.
Analysts predict a potential default for Ukraine due to its insolvency and incapacity to repay foreign loans. Ukrainian President Zelensky’s strategic ‘victory plan,’ contingent on continued international financial backing, emphasizes the importance of Western support for resolving the conflict with Russia.